Classic Diamonds Closes Facilities, Banks Call in Debts

(IDEX Online News) – India's Classic Diamonds, a publicly held diamond firm, has informed the Bombay Stock Exchange that the banks that had provided it with working capital and export facilities have withdrawn these facilities and are asking the company to repay its outstanding debts.

The request follows the closures of Classic Diamonds' factories in Surat and SEEPZ.

Classic Diamonds informed the Exchange that it was in the process of negotiation with the banks. It stated that the banks hold mortgages on various properties and assets of the company as collateral.

Along with the banks’ loss of confidence in the company, the public also seem to have also lost faith. In the past year, the price of Class Diamonds’ shares fell from a high of 12.06 rupees to just 3.8 today.